Mitchells & Butlers (M&B) has this morning reported that its like-for-like sales for the 51 weeks to 16 September were up 1.8%, despite a flat performance (+0.3%) over the last eight weeks of the period.
The company said that for the 51 weeks food like-for-like sales were ahead 1.4%, whilst drinks sales were up 2.1%. For the final eight weeks of the period, food sales were ahead 1.5%, but drink sales declined 1.2%. The group said that for the 10 weeks to 22 July, total like-for-like sales were up 2.6%, with food sales up 1.3% and drink sales ahead 3.8%.
The company said: “Following a strong sales performance in early summer the market has been more challenging in recent weeks, particularly given poor weather this year up against a sunny period last year which has specifically impacted drink sales. Encouragingly like-for-like sales growth continues to be ahead of the market. Total sales have increased by 2.9% in the year-to-date.”
As previously advised, M&B said that margins for the full year would be below last year due to inflationary cost pressures.
The company has opened 13 new sites and completed 236 conversions and remodels in the financial year to date. During the year, the company said it had disposed of 79 sites which did not fit into its long-term estate plan, 73 of which were sold as a package which completed in July with the remainder sold individually. The proceeds from disposals total £46m which was marginally above the net book value of the properties.
Phil Urban, chief executive, said: “Whilst the weather in August and September has adversely affected the market we remain encouraged that our like-for-like sales performance continues to outperform the market. This performance reflects the progress we have made towards our strategic priorities. We continue to work hard to mitigate the cost headwinds faced by the industry and expect to deliver a full year performance in line with the Board’s expectations. We will enter the new financial year with the momentum of solid sales growth, enhanced clarity on pension contributions and a clear strategy which we believe positions the company well to deliver long term shareholder value.”
